ONE DISTRICT ONE PRODUCT (UNDER PM FME)

1. Introduction

Entrepreneurs or aspiring startups in the state can avail the “One District One Product” scheme under PM FME of the Central Government. The scheme was introduced in June 2020 as one of the 16 action points of the Union budget of 2020 mainly to boost agriculture and fisheries sector in various states and Union territories.

The ODOP initiative was inspired by a similar program introduced successfully in Uttar Pradesh, the main aim being to give impetus to the traditional industries across the state and make them into profit making hubs. The same strategy is now being implemented pan India by the Central Government in collaboration with the states.

2. Key features of ODOP
   1. Who is ODOP scheme for?

ODOP is mainly aimed at encouraging micro food processing units and startups, like pickling units, jam making, mushroom industries, coconut farming, poultry, dairy, coir manufacturing, leather products, pottery, textiles, jaggery and even embroidery and zardozi work as well as traditional specialty foods and snacks of each area or district or any other product that is specifically produced in particular areas, giving special priority to micro food products.

1. 2. Highlights of ODOP under PM FME:

As a part of the Atma Nirbhar Bharat Abhiyaan, the PM Formalisation of Micro Food Processing Enterprises (PM FME) Scheme was instituted by the Ministry of Food Processing Industries. With an outlay of Rs.1.3 billion, the scheme will provide support over a duration of 5 years from 2020-2021 to 2024-2025.

Let us see some of the key features of the scheme:

• The state governments are required to identify specific crops for each district and industries related to it. To illustrate, turmeric has been selected as the crop for Erode district, carrot for the Nilgiris and coconut for Coimbatore.
• The center will help the state governments by inviting processors, experts and exporters of the selected crop. So they can source products directly from the farmer, FPO (Food Producer Organization) for better pricing.
• The scheme is open to individuals, groups, Co-operative Societies, Self-help groups (SHGs) either existing units or startups.
• ODOP is funded 60% by the Center and 40% by the State governments for various activities.
• Credit linked capital subsidy is provided to the processing units or startups with bank loan arrangements under 5 year-long scheme.
• Support in the form of business, marketing, finance and technology provided for scheme participants.
• Common infrastructure facilities which are related to the selected sector will also be provided.
• For existing units, the scheme will help with upgrade, building-up capacity as well as improvement in quality of products

1. 3. How can ODOP scheme help you in Coimbatore?

The crop selected under ODOP scheme for Coimbatore district is Coconut. Coconut farmers and producers and related industries like coconut oil extraction and processing industries, coconut milk and cream industries, tender coconut sellers, coconut flakes or desiccated coconut processing and exporting units, coconut sugar making units, etc can avail the benefits of the ODOP program.

Existing units of the above industries of individuals and groups wanting to startup can profit from the scheme.

1. 4. The scheme will provide 35% of the investment up to a ceiling of Rs.10 lakhs.

Existing units-how will the scheme help:

• Experts in the field will be invited to give support on quality of products and better crop varieties
• Exporters will be invited to interact directly not only with the farmers but also with the processing units to boost export, sales and direct profit in prices.
• Financial support for up gradation of the unit and increasing production, enhancing infrastructure facilities.
• Business strengthening
• Benefits include marketing augmentation and wider reach
• Training in latest technologies and methods

• 5. How can Startups avail benefits of this scheme?
• Capital support for startups
• Training and support in the Industry
• Scheme credit facility can be utilized for development of Infrastructure and capacity building.
• Advise on selection of fast moving and profit making units

1. 6. Whom to approach:

When entrepreneurs come with innovative ideas in the Food Processing Industries, the specific product identified to each district, they can prepare the basic details and approach the District Industries Centre’s and the Banker’s. The detailed project can be suitably prepared.

3. Checklist for preparing the project report

1. PAN Card
2. Udyam Registration
3. GSTN Certificate
4. Rent Agreement
5. Bank Account details
6. Quotation / Performa Invoice
7. Technical Details
8. Marketing Arrangements / Tie-up letter
9. Basic Assumption and Production details

It is a grade opportunity for the individual to a produce the value added product available within the district.

4. The advantage for taking up such projects are

• Raw Material Available easily
• Value addition support can be obtained from TNAU / CFTRI / Horticulture Department / GOI / Specialist / Free lancers.
• Higher quantity can be processed due to raw material availability by reducing transport cost.
• Export potential possible for agro based product.
• Government shall arrange seminars and support system to hand hold.